Renters can either opt for the Deposit Replacement Scheme or a traditional security deposit.The Deposit Replacement Scheme allows tenants to pay a smaller one-time check-fee of 1 week's rent one week’s rent (+VAT) in place of a traditional deposit. This reduces initial upfront cost, however, the fee is non-refundable and cannot be used to pay for damages.
At the end of tenancy, tenants are responsible for any damages, excessive wear and tear, unpaid rent or other unmet conditions of the tenancy.
A Traditional Security Deposit is 5 weeks of rent paid upfront which will be held in a deposit protection scheme. Security deposits are 100% refundable, given the tenant(s) adheres to the terms of the tenancy. This includes obligations such as paying rent on time each month, keeping the home free from damages, and not breaching the terms of the tenancy agreement.